Economic competitiveness gap related to the application of the GAEC standards of cross-compliance on farms: evaluation methodology

This paper describes the methods used in the monitoring carried out in the farms of the MO.NA.CO. project, to calculate the economic competitiveness gap faced by agricultural holdings that accede to the commitments imposed by the standards included in the project. The monitoring works were performed in agricultural holdings in relation to the particular reference condition of each standard. The processing of the information acquired allowed us to define the working times of each cultivation operation by means of the indications in the recommendations of the Associazione Italiana di Genio Rurale - Italian Rural Engineering Association, that considers the official methodology of the International Commission of the Organisation Scientifique du Travail en Agriculture (C.I.O.S.T.A.). The overall costs and revenues in case of compliance or non-compliance with the commitments of the standard were calculated by using Biondi’s methodology and other norms that indicate the technical and economic coefficients to be used in the calculations (EP 496.2 and D 497.4 ASAE standards). With the data related to the unit cost of ploughing a model Partial Least Squares (PLS) has been achieved and validated, and it makes possible to predict the unit cost of this agricultural operation. Finally, the values of the variation of the economic competitiveness gap are reported for each standard.